Caitlin Long: Fiscal Dominance, Stablecoins & the Macro Case for Bitcoin
Bitcoin Magazine Caitlin Long: Fiscal Dominance, Stablecoins & the Macro Case for Bitcoin Will tokenized deposits crowd out stablecoins? Custodia Bank's Caitlin Long explains why bringing tokenization to traditional banks is the bigger story. This post Caitlin Long: Fiscal Dominance, Stablecoins &
Source: Bitcoin Magazine
―
DW NOTE
Long is promoting tokenized bank deposits as a bigger story than the $300 billion stablecoin market, citing $5.7 trillion in demand deposits available for capture. She's wrong about the addressable market — demand deposits exist *because* they're insured and regulated, not despite it. Stablecoins grew to $300 billion precisely by offering what banks cannot: settlement finality, 24/7 availability, and no credit risk to a fractional reserve. The Treasury wants tokenized dollars to extend dollar hegemony offshore; the question is whether users who fled banks for stablecoins will voluntarily re-enter the balance sheet they just escaped.